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alstry (< 20)

Executives Fleecing America



September 11, 2008 – Comments (4)

Again, the SEC is letting corporate executives make billions and say whatever in the heck they want to as the American public watches their retirements evaporate.

How can the SEC KNOWINGLY  allow corporate executives to consistently say one thing and act in a totally opposite way?  This used to be a crime a few years ago and I don't believe the law has changed.

EVEN AS TOLL BROTHERS' (TICKER: TOL) chief executive officer, Robert Toll, says he sees "sunlight during otherwise stormy conditions" in the home-building market, selling went on relatively unabated.(Barrons)

In the past few weeks, Bob Toll and his board member brother have sold about 3 million shares of Toll stock as Bob keeps telling shareholders he sees sunlight.  BS....if he saw sunlight....they would be buying shares....not dumping making tens of millions in the process.

Again, this is just another example of trust breaking down.....if shareholders can't trust their CEO's and the board members supposed to protect them...who can they trust?  The analysts?

4 Comments – Post Your Own

#1) On September 11, 2008 at 4:12 AM, DemonDoug (31.04) wrote:

as much as florida has a penchant for getting aggravated by some of your posts alstry, i really wish he would tackle this issue with an objective mindset.  There is probably no one better on CAPS and maybe no other analyst out there that would be able to have the insight and the skills to put all of this in context.  Yes TOL has a great cash position and A lot locations, but this whole thing doesn't pass the smell test.

Again i agree al.  The SEC seems like a bunch of foxes hired by other foxes to guard the hen house.

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#2) On September 11, 2008 at 4:53 AM, alstry (< 20) wrote:

It doesn't matter where the lots are located.  The only thing that matters is price.  If the sale price of a house drops below construction cost, then every house the builder builds is at a loss and cash flow negative.

We are in a period of contracting credit following a period of unprecedented easy credit.  There has never been anything close to this situation in the last hundred years.  Couple that with declining wages and rising is simply a mess.

Just wait until the layoffs really start kicking in over the next few months.

Toll knows this as he is winding down his backlog and liqudating specs.  This past quarter was the best quarter Toll will see for a long while as sales evaporate going forward.

You think the Tolls are dumping because they are drinking kool-aid?

As trust continues to break down, expect anxiety to continue to rise.

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#3) On September 11, 2008 at 11:37 AM, russiangambit (28.89) wrote:

How can SEC hold private companies accountable when the government is the biggest lier of the all? Didn't Bush said just a week ago that economy is improving? And what about official inflation and unemployment numbers?

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#4) On September 11, 2008 at 1:08 PM, hbshorty2008 (< 20) wrote:

What gets me is TOL is trading at a 52 week high. Please tell me how the market on TOL's specific position looks better than it did a year ago?

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